PNB scam: CBI files its first charge-sheet

De Beers the world's largest diamond producer has said the business in the country will continue to grow this year

De Beers the world's largest diamond producer has said the business in the country will continue to grow this year

The government confirmed on Monday that it has started action for removal of Allahabad Bank CEO Usha Ananthasubramanian.

The secretary said the Allahabad Bank board has also been asked to divest Ananthasubramanian of all powers and initiate further action. She was the CEO and MD of PNB in 2016 when the fraud allegedly took place.

The CBI said that senior PNB officials did not comply with RBI's circulars over SWIFT control system, a platform for encashing letters of undertaking (LoU).

Rajeev Kumar, Secretary, Department of Financial Services (DFS), Ministry of Finance on Monday said that they have instructed the directors of the Punjab National Bank (PNB) and the Allahabad bank to divest all the powers of those who are accused in the multi-crore PNB scam.

State-run banks including Canara Bank, UCO bank, Dena Bank and Allahabad Bank reported massive losses last week.

The agency has also named PNB executive directors K V Brahmaji Rao and Sanjiv Sharan, and general manager (international operations) Nehal Ahad, and Nirav Modi's brother Nishal Modi in its charge sheet.


On a related note, the CBI today submitted a charge-sheet in a Special CBI Court in Maharashtra's Mumbai city in connection with the multi-crore scam.

PNB was hit by a almost Rs13,000 crore scam allegedly perpetuated by jewellers Nirav Modi and Mehul Choksi in connivance with some bank employees.

Earlier, on April 21, the Punjab National Bank moved a Hong Kong court against the billionaire jewellers in order to recover an amount of over Dollars 5 billion.

He also said state-run PNB had begun the process of removing two executive directors, without naming the executives or saying why the three were being ousted.

This is first of the two chargesheets the agency plans to file in the case. "One notice was issued 10 days back". All government directors and nominees have been asked to attend bank board meetings and all ED and MD-level vacancies have been forwarded to the Banks Board Bureau. "In the charge sheet we would mention that the probe will continue under Section 173 (8) of the CrPC", the official said. "They are responsible person and it's only a few who are into this kind of thing otherwise by and large bankers have contributed to the economic growth of the country".

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